OPXS Stock Down 4% Despite Q1 Earnings Surging Y/Y on Strong Margins
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Optex Systems' Q1 fiscal 2025 earnings increased year over year due to margin expansion and higher demand for periscopes. However, the stock fell by 4% as a 6.7% decline in backlog raised concerns amid shifts in defense priorities.
February 13, 2025 | 7:00 pm
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Optex Systems reported a year-over-year increase in Q1 earnings due to strong margins and demand for periscopes. Despite this, OPXS stock dropped 4% as a 6.7% decline in backlog raised concerns about future demand amid defense industry shifts.
The increase in earnings is a positive indicator, but the market reacted negatively to the decline in backlog, which suggests potential future demand issues. This concern is heightened by shifts in defense priorities, leading to a short-term negative impact on the stock price.
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